Closing Wrap-Up, May 15
Email This Article
Print This Article
Digg This
Delicious
SubscribeMOST POPULAR ARTICLES
- Platinum Tools: Trading Uncertainty
- Options Corner: The Greeks and Their Mystery Unveiled! Part IV
- Option Watch: July 1—From Sizzle to Fizzle?
- Closing Wrap-Up, July 1
- Tech World: Southwestern Energy Continues its Strong Sales Growth
- Closing Wrap-Up, July 2
- Kaeppel’s Corner: Transporting Your Way to Profits
- Midday Action: July 2
- Market Insight: Western Digital Showing Tremendous Fundamentals
- Weekly Outlook, June 30
- Options Corner: The Greeks and Their Mystery Unveiled! Part II
- Options Talk: The Greeks and Their Mystery Unveiled! Part I
- Options Corner: The Greeks and Their Mystery Unveiled! Part IV
- Market Insight: Western Digital Showing Tremendous Fundamentals
- Options Corner: Looking for the Heat in Hot Sectors
- Options Corner: Looking for the Heat in the Hot Sectors, Part II
- Kaeppel’s Corner: Gyratin’ All Over
- Kaeppel’s Corner: Gyratin’ All Over, Part II
- Kaeppel’s Corner: Buying on the Pullback
- Options Corner: The Greeks and Their Mystery Unveiled! Part III
- Economic Watchdog, July 3
- Growth Stock Swing Option: July 3, 2008
- Platinum Tools: Trading Uncertainty
- Market Insight: Western Digital Showing Tremendous Fundamentals
- Midday Action: July 3
- Interview Central: David Fry, Part II
- Hot Shots: D.B.A. a Bull?
- Kaeppel’s Corner: Transporting Your Way to Profits
- Midday Action: July 2
- Option Watch: July 1—From Sizzle to Fizzle?
SPONSORED LINKS
May 15, 2008
Stocks see further gains Thursday despite disappointing economic data. The Dow ($INDU) gained 94.28 points to close the session at 12,992.66. The S&P 500 ($SPX) added 14.91 points, closing at 1,423.57. The NASDAQ ($COMPQ) tacked on 37.03 points to 2,533.73. Volume was moderate despite with 1.19 billion shares traded on the NYSE and 2.24 billion shares exchanged on the Naz. Market breadth was positive by a 22-to-9 and 18-to-11 margin on the Big Board and Naz respectively.
Economic news was abundant Thursday with most the data showing weakness. There were two regional manufacturing reports in the form of the Philly Fed survey and the Empire State Mfg. survey. Both reports showed contraction with the Philadelphia region seeing its index remain in negative territory at -15.6. This was slightly better than anticipated, but shows that sluggishness remains. This was further supported by the industrial production report, which showed a decline of -0.7 percent, 4-tenths worse than expected. In the past year, industrial production is up 0.2 percent, which is well below the 1.4 percent gain seen in the prior month.
In merger news, CBS (CBS) announced it would purchase CNet (CNET) for $1.8 billion or $11.50 a share. This sent CNET shares higher by 43.5 percent to $11.41 with CBS shares down 2.4 percent to $24.23. CBS is hoping that the move will help them expand their presence on the Web. In other Internet related news, billionaire Carl Icahn officially announced plans to take a proxy fight to Yahoo (YHOO). Mr. Icahn is upset that YHOO rejected Microsoft’s (MSFT) bid. YHOO shares gained 2.25 percent to $27.75 Thursday with MSFT shares rising 1.74 percent to $30.45.
The housing market index continued to show weakness, falling one points to 19 in May. The low for this index came in December at 18, but was trading at 33 one year ago. Buyer traffic was weak, falling two points to 17, a sign that the bottom for housing isn’t here yet. Housing starts are due out tomorrow and are expected to show an annualized rate of 940,000 units.
For the most part, the major market indices remain below resistance at their respective 200-day moving averages. However, the Naz did break through this level, although volumes remain on the light side. It will be interesting to see how stocks fare to end the week and if the bulls can finally find the strength to push through resistance.
Jody Osborne
Senior Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
Visit Jody's Forum
© Copyright 1995-2008 Optionetics. All rights reserved. This material is for personal use only. Republication and re-dissemination, including posting to newsgroups, is expressly prohibited without the prior written consent of Optionetics. Optionetics is a registered trademark of Optionetics, Inc.